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People wonder why the price of XMR is not keeping up with BTC.
Let me give you some perspective on how the messed up financial world works
Read an article today explaining how to "front run Grayscale's movements of the price of BTC". The article did a poor job explaining ...
Let me give you some perspective on how the messed up financial world works
Read an article today explaining how to "front run Grayscale's movements of the price of BTC". The article did a poor job explaining ...
what's actually going on, so here is the low down.
Grayscale offers sale of shares to "accredited investors" at zero premium. Retail investors must buy GBTC at a premium of typically 15 - 30 %.
The accredited investors may hand Grayscale USD or BTC in exchange for the zero ...
Grayscale offers sale of shares to "accredited investors" at zero premium. Retail investors must buy GBTC at a premium of typically 15 - 30 %.
The accredited investors may hand Grayscale USD or BTC in exchange for the zero ...
premium GBTC shares.
Some of these investors are handing Grayscale borrowed BTC.
After a six month holding period, the accredited investor ma sell their GBTC shares at the market price. So they get to pocket the premium.
In order to close out the transaction, the ...
Some of these investors are handing Grayscale borrowed BTC.
After a six month holding period, the accredited investor ma sell their GBTC shares at the market price. So they get to pocket the premium.
In order to close out the transaction, the ...
accredited investor needs to buy BTC on the open market to repay their BTC loan.
So the price of BTC has been going up when these accredited investors do that buying.
So the price of BTC has been going up when these accredited investors do that buying.
This allows Grayscale to take possession of borrowed BTC. That's why the price of BTC does not go up when they "buy" a bunch of BTC, but it does go up six months later when those loans are closed out.
Here's the article: https://hackernoon.com/grayscales-gbtc-pump-effect-means-2021-will-start-slow-0gu340l#:~:text=These%20accredited%20investors%20can%20then%20give%20BTC%20or,receives%201000%20GBTC%20shares%20(minus%20a%20small%20fee).
This is a form of financial engineering which will ultimately blow up. The accredited investors are taking a chance that they will be able to buy BTC on the market with their USD from selling GBTC at a premium. There are several...
This is a form of financial engineering which will ultimately blow up. The accredited investors are taking a chance that they will be able to buy BTC on the market with their USD from selling GBTC at a premium. There are several...
ways that this can blow up. If the premium disappears, if the BTC market is going up so fast that the investors can't buy back their loan, if BTC price goes up so fast during the six month loan term that BlockFi or Celsius Network demands a more collateral than they have...
In short, BTC is going up because the legacy financial system is driving it up in all the unstable ways that this kind of thing always happens.
Meanwhile XMR is chugging along, eating BTC's lunch in the dark net markets, lurking like the small mammals 65 M years ago who ...
Meanwhile XMR is chugging along, eating BTC's lunch in the dark net markets, lurking like the small mammals 65 M years ago who ...
replaced the lumbering dinosaurs.
